Super resources

How super works

Superannuation is a way of saving for your retirement.

It’s never too early to start thinking about your super – whether you’re new to the idea, or even new to Australia

For most employees – under the Government’s Superannuation Guarantee (SG) requirements – a percentage of your earnings (currently 9.5%) is paid by your employer into a super fund for you.

Here's how it works:

It’s a smarter way to save

The tax benefits of super can make it a great way to save for your retirement.

SG contributions are taxed by the Government at 15%, which is generally less than your marginal tax rate. If you are a high income earner (more than $250,000 a year) your contributions will be taxed at 30%*.

You can always boost your super in other ways. You can sacrifice some of your salary (a before-tax arrangement with your employer to pay more than the SG contributions into your super), or make personal, after-tax contributions.

*15% tax is deducted by your super fund and the ATO will issue an assessment to the you for the additional 15%.